Emerging Middle Class To Drive Africa’s Growth

International audit firm, Deloitte, has projected that Africa’s gross domestic product (GDP) may expand by 50% to $3.7-trillion by 2019.

The reason for this growth is Africa’s emerging middle class and increased household demand.

In the report, Deloitte said “Rising consumer demand, aligned with annual growth of around 8% is likely to add around $1.1-trillion to African GDP by 2019, with Ethiopia, Uganda and Mozambique among the fastest expanding market.”

In the same vein, the International Monetary Fund (IMF) has forecasted that Sub-Saharan Africa is to grow by 5% this year.

The Standard Bank Group has also forecasted that middle-class households in 11 leading economies in the region are set expand to about 40-million by 2030, with the biggest growth seen in Nigeria, the continent’s largest economy, according to a report by Standard Bank Group.

The Deloitte report, however, also made known that while growth in demand for consumer products, including luxury items and smartphones offered opportunities, different regulations in individual markets were hurdles to set up businesses and companies needed long-term strategies for investment in Africa, Deloitte said.

“Where there are challenges, there are also opportunities to innovate,” it said.

The report further said “Given the potential for growth the continent offers, the business opportunities in Africa could outweigh the risks.”